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Donald Trump reveals who will qualify for 'largest tax rebates' in history as millions of Americans promised money back
President Donald Trump is promising a major financial boost for American taxpayers as filing season looms, declaring that next year could bring the biggest refund bonanza the country has ever seen.
Speaking during a Cabinet meeting on Tuesday, Trump pointed to the newly enacted One Big Beautiful Bill Act (OBBBA) as the driving force behind what he says will be historic refund amounts. The legislation, signed into law on July 4, extended key tax cuts from Trump’s first term and included fresh reforms aimed at easing financial pressure on workers and families.
"Next year's projected to be the largest tax refund season ever," Trump said.
Treasury Secretary Scott Bessent backed up the claim, saying many of the OBBBA’s provisions were made retroactive to the current year, setting up a significant return for taxpayers in early 2026. "In 2026 we are going to see very substantial tax refunds in the first quarter," Bessent said, per Fox Business.
Who will benefit from the largest rebates?
According to Bessent, key groups of Americans will qualify for significant relief under the new law. These include:
- Social Security beneficiaries who will receive tax relief on benefits
- Workers earning tips and overtime, now eligible for targeted deductions
- Buyers of U.S.-made cars, who can deduct auto loan interest
"The best way to address the affordability crisis is to give Americans more money in their pockets, which is what this bill has done. We're going to see real wage increases. I think next year is going to be a fantastic year," Bessent added.
Trump also re-emphasized his idea of using tariff revenue to reduce the national debt while giving back to the public. "We're going to be giving back refunds out of the tariffs because we've taken in literally trillions of dollars, and we're going to be giving a nice dividend to the people, in addition to reducing the debt," he said.
"I believe that, at some point in the not too distant future, you won't even have income tax to pay because the money we're taking in is so great. It's so enormous that you're not going to have income tax to pay, whether you get rid of it or just keep it around for fun or have it really low, much lower than it is now, but you won't be paying income tax," Trump added.
Experts raise concerns over cost of tariff dividends
While the White House pushes forward with the idea of $2,000 tariff dividends for low- and middle-income Americans, the cost is drawing scrutiny. The nonpartisan Committee for a Responsible Federal Budget (CRFB) estimates such a plan could increase national debt by $6 trillion over a decade.
According to the CRFB, Trump’s tariffs have brought in about $100 billion so far this year, including some that have been deemed illegal by federal courts and are now pending appeal. On average, tariffs are expected to generate about $300 billion per year, but net new revenue not tied to legal challenges sits under $100 billion annually.
Compared to other federal revenue streams, tariffs are a small slice of the pie. For fiscal year 2025, individual income taxes made up $2.656 trillion, payroll taxes contributed $1.748 trillion, and corporate taxes added $452 billion. Customs duties, including tariffs, accounted for just $195 billion - about 3.7% of the year’s total tax receipts.